U.S. stocks rallied Monday, with the S&P 500 up 2.3% after oil prices swung lower.
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U.S. markets rebounded Monday and recovered most of the loss from the previous week as oil prices declined.
The S&P 500 rose 2.3% for a second straight gain, leaving it 3.4% below its all-time high set last month. The Dow Jones Industrial Average jumped 1,104 points, or 2.2%, while the Nasdaq composite climbed 2.7%.
Broadly, energy prices provided support: the price of a barrel of Brent crude fell 5.8% to $92.57.
The move came after concerns that Democratic victories in U.S. midterm elections could slow construction of AI data centres. Additional factors cited for the broader strength included strong profit reports from major U.S. companies.
Constellation Energy climbed 10.5% after reporting summer profit and revenue that topped analysts’ expectations. In the AI sector, Advanced Micro Devices rose 13.3%, CoreWeave gained 5.6%, and Nvidia fell 4.3% even as its board said it had “no reason to believe” national security or Nvidia secrets were compromised and that it is investigating after its CEO acknowledged an intimate relationship with a business executive.
Outside the United States, European and Asian indexes rose across much of the region, including France’s CAC 40 up 1.2% and Japan’s Nikkei 225 up 2.3%. Indexes in China and South Korea were less strong, with Seoul’s Kospi down 0.8%.
In the bond market, the 10-year Treasury yield inched up to 4.87% from 4.86% late Friday and remained below a peak above 5.30% reached last month.
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